New York judge Arthur Engoron has recently ordered former President Donald Trump to pay over $350 million for civil fraud, which is to benefit from intentionally withholding or misrepresenting information. Including interest, this amount increases to around $454 million, and is increasing every day until it is paid. Now, Trump is racing against the clock to come up with the money in 30 days or his New York assets could be seized. The former President has also been barred from running businesses in New York for three years.
Letitia James, the New York Attorney General, brought charges against Donald Trump for committing civil fraud last year. Trump has been accused of inflating his wealth and lying about financial data in order to receive favorable loans from banks, insurance companies, and more. As Trump built up his image as an extremely wealthy businessman, this lawsuit is a massive blow to his reputation. The penalty the former President faces for civil fraud was finalized on Friday, with a base amount of $355 million. Almost half of this amount is damages for the lenders he is accused of duping. The amount will increase by about $112,000 every day.
Donald Trump has appealed the decision made by the New York court, denying all wrongdoing. However, he will have to come up with “sufficient funds,” according to the Attorney General. James is determined to punish the former President for his fraudulent business, rejecting the idea that a former President should have immunity.
“Donald Trump is finally facing accountability for his lying, cheating, and staggering fraud. Because no matter how big, rich, or powerful you think you are, no one is above the law,” James stated. In an interview with ABC News, she stated that, “If he does not have funds to pay off the judgment, then we will seek judgment enforcement mechanisms in court, and we will ask the judge to seize his assets,” She specifically mentioned 40 Wall Street, also known as the Trump Building.
Trump has two options for paying the $454 million to prevent his assets being seized. He could directly pay New York State by writing a check, although he is not expected to have that money on hand. Trump will likely seek out an appeal bond, which is a payment held by a bonding company while a case is being appealed, with the promise that the money will be paid if the appeal fails. If Trump fails to pay the judgment, however, the bonding company will be held liable. The former President will also need to pay a large fee to the bonding company. Due to the size of the judgment, there are not many companies that Trump will be able to get an appeal bond from, and they may not agree to make a deal with him.
Trump’s campaign is reportedly struggling with funding due to the former President’s legal fees. This is only one of Trump’s many legal struggles, including his Supreme Court case over whether states can bar him from the ballot. As the 2024 presidential election draws closer, the former President will be facing a tough battle with incumbent Joe Biden, and these legal struggles could bring his campaign down.
Sophomore Nicholas Carpenter is the News Editor. His email is ncarpent@fandm.edu.